Head to Head Comparison: PureCycle Technologies (NASDAQ:PCT) & PPG Industries (NYSE:PPG)
by Kim Johansen · The Markets DailyPPG Industries (NYSE:PPG – Get Free Report) and PureCycle Technologies (NASDAQ:PCT – Get Free Report) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Earnings & Valuation
This table compares PPG Industries and PureCycle Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PPG Industries | $15.88 billion | 1.48 | $1.58 billion | $6.98 | 15.09 |
| PureCycle Technologies | $8.35 million | 98.40 | -$182.57 million | ($1.46) | -2.80 |
PPG Industries has higher revenue and earnings than PureCycle Technologies. PureCycle Technologies is trading at a lower price-to-earnings ratio than PPG Industries, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
81.9% of PPG Industries shares are held by institutional investors. Comparatively, 63.0% of PureCycle Technologies shares are held by institutional investors. 0.3% of PPG Industries shares are held by insiders. Comparatively, 18.8% of PureCycle Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
PPG Industries has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, PureCycle Technologies has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500.
Profitability
This table compares PPG Industries and PureCycle Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PPG Industries | 9.57% | 21.07% | 7.80% |
| PureCycle Technologies | -1,618.84% | -612.39% | -22.08% |
Analyst Recommendations
This is a summary of current ratings for PPG Industries and PureCycle Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PPG Industries | 0 | 9 | 8 | 0 | 2.47 |
| PureCycle Technologies | 1 | 1 | 1 | 0 | 2.00 |
PPG Industries currently has a consensus target price of $126.06, suggesting a potential upside of 19.68%. PureCycle Technologies has a consensus target price of $11.75, suggesting a potential upside of 187.29%. Given PureCycle Technologies’ higher possible upside, analysts clearly believe PureCycle Technologies is more favorable than PPG Industries.
Summary
PPG Industries beats PureCycle Technologies on 10 of the 14 factors compared between the two stocks.
About PPG Industries
PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft. The Industrial Coatings segment offers coatings, adhesives and sealants, and metal pretreatments, as well as services and coatings applications for appliances, agricultural and construction equipment, consumer electronics, automotive parts and accessories, building products, kitchenware, and transportation vehicles and other finished products; and on-site coatings services. It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage and personal care, promotional, and specialty packaging; amorphous precipitated silica for tire, battery separator, and other end-uses; TESLIN substrates for labels, e-passports, drivers' licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes. PPG Industries, Inc. was incorporated in 1883 and is headquartered in Pittsburgh, Pennsylvania.
About PureCycle Technologies
PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multiple applications, including packaging and labeling for consumer products, piping, ropes, cabling, and plastic parts for various industries. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.